Charter Hall Group acquired $3bn worth of assets over the first four months of FY21, leading to a 7% increase in the group’s assets under management (AUM) since June to $43.3bn. This beats Macquarie’s previous full-year forecast of $42.3bn.
Macquarie has lifted its AUM assumptions to $44.7bn led by an increase in transactions leading to operating earnings per share upgrades. Overall, the broker sits 5.5% above guidance for FY21.
Assuming 20% AUM growth per year until FY23 could drive FY23 valuation of $18.4 per share.
With the group in an earnings upgrade cycle and earnings risks skewed to the upside, Macquarie maintains its Outperform rating with the target rising to $15.21 from $13.45.
Sector: Real Estate.
Target price is $15.21.Current Price is $13.98. Difference: $1.23 – (brackets indicate current price is over target). If CHC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).